Copper and zinc help turn Glencore’s loss into profit
The group’s adjusted interim earnings rise fourfold as electric cars and energy storage push up prices of elements
Diversified global miner Glencore has significant growth options in copper and zinc, the prices of which are benefiting from the roll-out of electric vehicles and energy storage, says CEO Ivan Glasenberg. The group, which has coal mines and ferrochrome smelters in SA, turned its 2016 basic interim loss of $0.03 per share into a profit of $0.17 per share in the six months to June. Adjusted earnings before interest and tax rose fourfold to $3.8bn compared with the same period in 2016, reflecting higher commodity prices and a focus on cost-containment. Glencore generated $5.2bn cash from its operations and distributed $500m to shareholders, after a similar distribution in May, equivalent to a dividend of $0.07 a share. Chief financial officer Steve Kalmin said Glencore would not distribute more than the $1bn for 2017 that was promised in February to give certainty to investors and ensure balance sheet strength. In 2018, it would distribute a minimum of $1bn from its marketing cash flow...
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